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Barron, Question,
The second amendment to the SPSPA dated December 24, 2009, was 7 days before December 31, 2009, which was the termination date, ending date, that permitted the Treasury to purchase obligations of the Enterprise Fannie Mae: This second amendment has been recorded in the amount of $200,000,000,000 (two hundred billion dollars): This amount of money is construed as a commitment from the Treasury, a line of credit, backstop. This money was not used to purchase obligations of Fannie Mae as permitted in the HERA legislation: Did the FHFA have authority to enter into contract under these terms as defined by the changes of the company's Charter Act by HERA?
Congress did not authorize the FHFA the authority to change any portion of the Charter Act through the HERA legislation. The FHFA and its Director are executive branch entities. They cannot make changes to federal laws. Only Congress can change the law. For a complete list of all changes that Congress made to the Fannie search through the following document for “charter act”.
Below is a thread to one of the changes in the Federal National Mortgage Association Charter Act made by HERA. Section 304 Charter Act amended.
HOUSING AND ECONOMIC RECOVERY ACT OF 2008
PUBLIC LAW 110–289—JULY 30, 2008
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, (Highlighted below) …
DIVISION A—HOUSING FINANCE REFORM
SEC. 1002. DEFINITIONS.
‘‘(3) AUTHORIZING STATUTES.—The term ‘authorizing statutes’ means— ‘‘(A) the Federal National Mortgage Association Charter Act; ‘‘(B) the Federal Home Loan Mortgage Corporation Act; and ‘‘(C) the Federal Home Loan Bank Act.
TITLE I—REFORM OF REGULATION OF ENTERPRISES
FHFA: SEC. 1101. ESTABLISHMENT OF THE FEDERAL HOUSING FINANCE AGENCY.
‘‘Subtitle B—Required Capital Levels for Regulated Entities, Special Enforcement Powers, and Reviews of Assets and Liabilities’’;
SEC. 1117. TEMPORARY AUTHORITY FOR PURCHASE OF OBLIGATIONS OF REGULATED ENTITIES BY SECRETARY OF TREASURY.
(a) FANNIE MAE.—Section 304 of the Federal National Mortgage Association Charter Act (12 U.S.C. 1719) is amended by adding at the end the following new subsection:
; CONDITIONS.—
‘‘(1) AUTHORITY TO PURCHASE.—
‘‘(A) GENERAL AUTHORITY.—
‘‘(B) EMERGENCY DETERMINATION REQUIRED.—
‘‘(C) CONSIDERATIONS.—
‘‘(v) The need to maintain the corporation’s status as a private shareholder-owned company.
‘‘(D) REPORTS TO CONGRESS.—
‘‘(2) RIGHTS; SALE OF OBLIGATIONS AND SECURITIES.—
‘‘(3) FUNDING.—
‘‘(4) TERMINATION OF AUTHORITY.—The authority under this subsection (g), with the exception of paragraphs (2) and (3) of this subsection, shall expire December 31, 2009.
Paragraphs (2) and (3) Allows the Treasury to sale obligations and securities purchased from the time the Enterprises were taken over to the end of the purchase period December 31, 2009.
Link: https://www.congress.gov/110/plaws/publ289/PLAW-110publ289.pdf
Link: https://www.sec.gov/Archives/edgar/data/310522/000095012309074293/w76743exv4w1.htm
14th amendment
"Due Process": This refers to basic rights for citizens whenever the government attempts to place burdens on the person or their private property
Other constitutional laws: The 14th amendment also covers issues like public debt, and various other constitutional law concepts
Section 4.
The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any state shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.
Barron Quote: “Charter act prohibits the commitment fees (Seniors, warrants, variable liquidation preference). More importantly the actions of Treasury to appropriate 200 billion in taxpayer debt, take non regulatory control of the companies through the SPSPA (require Treasury permission at least 10 separate times) and ownership of more than 50% of the companies requires them under the GAO act and the CFO act to consolidate the GSEs onto the nations balance sheet. The fact that that hasnt happened means the Treasury has violated the 14th amendment to the Constitution by repudiating the 5 trillion in debt the Treasury has acquired through their actions since 2008. Their actions have resulted in a takings of the entire enterprise value of the formerly private companies. These actions have necessarily turned the GSEs back into agencies of the executive branch as they were originally created. This is the definition of a major question and also a separation of powers problem since Congress did not authorize the actions Treasury took and continues to take.” End of Quote
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=171351846
The conservator eliminated common and preferred stock dividends (other than dividends on the senior preferred stock issued to Treasury) during the conservatorship.
10K page 11
Link: https://www.fanniemae.com/media/46276/display
Barron question,
The FHFA PUBLIC LAW 110–289—JULY 30, 2008 HOUSING AND ECONOMIC RECOVERY ACT AMENDED CHARTER ACT Section 304 for a Temporary time period that expired December 31, 2009. This portion give the Treasury TEMPORARY AUTHORITY TO PURCHASE OBLIGATIONS AND SECURITIES; Here is my question, Is this Authority to Purchase Obligations and Securities completely separate from the SPSPA?
My understanding the Treasury was given temporary approval to purchase Mortgage Backed Securities. If this is the case and The Charter Act being the Supreme Law of the land governing Fannie and Freddie, the Treasury would be bound to the limits of $2,250,000,000 recorded in the Charter. The Below Amendment increases the Treasury’s Commitment way beyond $2,250,000,000
SECOND AMENDMENT dated as of December 24, 2009, to the AMENDED AND RESTATED SENIOR PREFERRED STOCK PURCHASE AGREEMENT dated as of September 26, 2008, between the UNITED STATES DEPARTMENT OF THE TREASURY
Link: https://www.sec.gov/Archives/edgar/data/310522/000095012309074293/w76743exv4w1.htm
Barron, The Treasury was given a limited amount of time to purchase obligations and securities (expired December 31, 2009). Treasury was authorized to purchase any obligations and other securities issued by the corporation under any section of this Act, on such terms and conditions as the Secretary may determine and in such amounts as the Secretary may determine.
PUBLIC LAW 110–289—JULY 30, 2008
HOUSING AND ECONOMIC RECOVERY ACT
AMENDED CHARTER ACT Section 304 for a Temporary time period that expired December 31, 2009.
TEMPORARY AUTHORITY OF TREASURY TO PURCHASE OBLIGATIONS AND SECURITIES;
SEC. 1117. TEMPORARY AUTHORITY FOR PURCHASE OF OBLIGATIONS OF REGULATED ENTITIES BY SECRETARY OF TREASURY.
(a) FANNIE MAE.—Section 304 of the Federal National Mortgage Association Charter Act (12 U.S.C. 1719) is amended by adding at the end the following new subsection:
‘‘(g) TEMPORARY AUTHORITY OF TREASURY TO PURCHASE OBLIGA- TIONS AND SECURITIES; CONDITIONS.
‘(4) TERMINATION OF AUTHORITY.—The authority under this subsection (l), with the exception of paragraphs (2) and (3) of this subsection, shall expire December 31, 2009.
‘‘(g) TEMPORARY AUTHORITY OF TREASURY TO PURCHASE OBLIGA- TIONS AND SECURITIES; CONDITIONS.—
‘‘(1) AUTHORITY TO PURCHASE.—
‘‘(A) GENERAL AUTHORITY.—In addition to the authority
under subsection (c) of this section, the Secretary of the Treasury is authorized to purchase any obligations and other securities issued by the corporation under any section of this Act, on such terms and conditions as the Secretary may determine and in such amounts as the Secretary may determine.
Link: https://www.congress.gov/110/plaws/publ289/PLAW-110publ289.pdf
Okay, Only Congress can change the law. Next question, Did Congress change any portion of the Charter Act when Congress passed the HERA legislation?
Barron, what part of the Charter Act did Congress authorize HERA to change? Another way to put it…
Did Congress authorize the FHFA the authority to change any portion of the Charter Act through the HERA legislation?
https://www.sec.gov/Archives/edgar/data/310522/000031052219000385/fanniemaecharteractex31.htm
First page of Fannie Mae 10K
Link; https://www.fanniemae.com/media/46276/display
If you hold Preferred Shares and would like to read your rights. Link below, search your particular preferred stock click the link:
EACH SERIES: CERTIFICATE OF DESIGNATION OF TERMS OF NON-CUMULATIVE PREFERRED STOCK - Page 218.
Link: https://www.fanniemae.com/media/46276/display
Barron, this writing is for your readers...
FEDERAL NATIONAL MORTGAGE ASSOCIATION CHARTER ACT
SEC. 304. SECONDARY MARKET OPERATIONS
Quote: (c) PURCHASE OF OBLIGATIONS BY TREASURY; CONDITIONS AND RESTRICTIONS. The Secretary of the Treasury shall not at any time purchase any obligations under this subsection if such purchase would increase the aggregate principal amount of the Secretary’s then outstanding holdings of such obligations under this subsection to an amount greater than $2,250,000,000." End of Quote
Barron said Quote: " Isnt it interesting that Congress temporarily authorized Treasury to exceed the statutory limit of owning 2 trillion in FNMA obligations when they allowed in Section 304 of the Charter Act for Treasury to purchase FNMA obligations and securities to stabilize the markets and FNMA balance sheets? Funny, I cant find where Congress tells Treasury to let the Fed do it instead. You can go create an illegal 200 billion commitment instead and use it to Nationalize the GSEs." End of Quote
Charter Act
Link: https://www.sec.gov/Archives/edgar/data/310522/000031052219000385/fanniemaecharteractex31.htm
Evidence
The Toxic Waste seems to have been funneled through Fannie to the Fed.
Quote: "It's a big event that the Federal Reserve is offering to buy up nearly 10% of the agency mortgage market," said Art Frank, a mortgage strategist with Deutsche Bank Tuesday morning, the Federal Reserve announced that it would buy up to $500 billion of mortgage bonds guaranteed by Fannie, Freddie and Ginnie Mae, providing the ultimate support to prop up the $4.8 trillion market of these securities. The central bank also will buy $100 billion of the mortgage finance companies' debt securities, including that of the Federal Home Loan Bank, through reverse auctions starting next week. So far, other initiatives to prop up the market including a plan to have both the government-sponsored enterprises buy nearly $200 billion of these bonds and the U.S. Treasury's unlimited purchase of these bonds have done little to stop the weakening of risk premiums on mortgage bonds. As a result, mortgage rates have remained at elevated levels with little relief to consumers." End of Quote
Link: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=33791597
The Fed Quantitative Easing monetary policy violated the Charter Act by running the mortgages through Fannie and Freddie.
Barron, From Board of Governors of the Federal Reserve System
95th Annual Report 2008
Quote: "In secondary mortgage markets, securitization of mortgages by Fannie Mae and Freddie Mac has fallen in recent months, and gross issuance of GSE-backed MBS has lately just out paced maturing issues so that levels outstanding have only inched up since the summer." End of Quote
Quote: "since the November 25 announcement of the Federal Reserve’s program to purchase MBS issued by the housing GSEs and Ginnie Mae, and they currently stand at 5 percent." End of Quote page 19
Link: https://www.federalreserve.gov/boarddocs/rptcongress/annual08/pdf/AR08.pdf
FOFreddie, if you feel up to the task, contact the Transfer Agent get us a head count. We as shareholders have a legal right to know. Thanks
Several years ago, I attempted to obtain the list of common and preferred stockholders of record by contacting the transfer agent at Computershare Trust. Fannie Mae governed by the Security and Exchange Commission is required to report this information to the shareholders. I was given the run around and did not press the issue. It was a different address, new address...
Address: The transfer agent and registrar for our common stock is Computershare Trust Company, N.A., and its address is
P.O. Box 43006, Providence, RI 02940-3006 or, for overnight correspondence, 150 Royall St., Suite 101, Canton, MA
02021.
Link: page 59, 10K
https://www.fanniemae.com/media/46276/display
FEDERAL NATIONAL MORTGAGE ASSOCIATION CHARTER ACT
Link: https://www.sec.gov/Archives/edgar/data/310522/000031052219000385/fanniemaecharteractex31.htm
The above link comes from 10K page 218
FANNIE MAE BYLAWS
As amended through January 29, 2019
Link: https://www.sec.gov/Archives/edgar/data/310522/000031052219000116/fanniemae201810kex32.htm
The above link comes from 10K page 218
If you hold Preferred Shares and would like to read your rights. Link below, search your particular preferred stock click the link:
EACH SERIES: CERTIFICATE OF DESIGNATION OF TERMS OF NON-CUMULATIVE PREFERRED STOCK - Page 218.
Link: https://www.fanniemae.com/media/46276/display
Holders
As of February 1, 2023, we had approximately 8,000 registered holders of record of our common stock.
10K Page 59
https://www.fanniemae.com/media/46276/display
Evidence
The Toxic Waste seems to have been funneled through Fannie to the Fed.
Quote: "It's a big event that the Federal Reserve is offering to buy up nearly 10% of the agency mortgage market," said Art Frank, a mortgage strategist with Deutsche Bank Tuesday morning, the Federal Reserve announced that it would buy up to $500 billion of mortgage bonds guaranteed by Fannie, Freddie and Ginnie Mae, providing the ultimate support to prop up the $4.8 trillion market of these securities. The central bank also will buy $100 billion of the mortgage finance companies' debt securities, including that of the Federal Home Loan Bank, through reverse auctions starting next week. So far, other initiatives to prop up the market including a plan to have both the government-sponsored enterprises buy nearly $200 billion of these bonds and the U.S. Treasury's unlimited purchase of these bonds have done little to stop the weakening of risk premiums on mortgage bonds. As a result, mortgage rates have remained at elevated levels with little relief to consumers." End of Quote
Link: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=33791597
FOFreddie your “questions would be who is helping the GSEs come up with the required Capital Plans and what is meant by "public disclosure and what is implied by the Jan 1 2025 date as highlighted in bold?”
I don’t have all the answers. My thoughts, if upper management of the companies need assistance coming up with a Capital Plan existing management should be fired and replaced with management that can get the job done… On the other hand IF the burden placed on management is so high by reason of the FHFA required percentage of capital no management in this world could come up with a plan. It has been presented over and over the GSEs are not banks and should not be made to hold bank like capital. I’m not a CFO but I understand the insinuation of to high of a capital requirement.
Public disclosure sounds like the FHFA will require the plan published in the 10K each year.
Regards
I wonder how much the two companies had to pay Morgan Stanley and J.P. Morgan?
FHFA Director Calabria went of record as saying that the PSPAs should be further amended to deal with the capital stack and that given the structure of the balance sheets as they are today, it will be very difficult if not impossible to raise outside capital. Treasury, for its part, had contemplated eliminating all or a portion of the liquidation preference of Treasury’s senior preferred shares or exchanging all or a portion of that interest for common stock or other interests in the Companies. The Companies could then sell new shares of stock.
The FHFA / Treasury agreed to modifications to the Preferred Stock Purchase Agreements (PSPAs) that permitted Fannie Mae and Freddie Mac to retain additional earnings. The Treasury and the Enterprises are each authorized to enter into letter agreements further amending the Certificate by modifying the dividend and liquidation preference provisions of the senior preferred stock sold by the Enterprise to Treasury. The modification could be either or elimination all or a portion of the liquidation preference or exchange all or a portion of the SPS for common stock.
The FHFA and Treasury used a fancy set of legal maneuvers to strip both corporations of their assets. FHFA and Treasury ripped up the old agreement sweeping all of the Net Worth. And If the FHFA allows the Treasury to convert the SPS into Common Stock this will destroy most if not all of the existing common shareholders.
Written the terms of the contract:
The Senior Preferred Stock cannot be converted to common stock.
No 6 and No 7
Quote “No Conversion or Exchange Rights
The holders of shares of the Senior Preferred Stock shall not have any right to convert such shares into or exchange such shares for any other class or series of stock or obligations of the Company.
No Preemptive Rights
No holder of the Senior Preferred Stock shall as such holder have any preemptive right to purchase or subscribe for any other shares, rights, options or other securities of any class of the Company which at any time may be sold or offered for sale by the Company.” End of Quote
https://www.fhfa.gov/Conservatorship/Documents/Senior-Preferred-Stock-Agree/FNM/SPSPA-amends/FNM-Fourth-Amended-Restated-Certificate-04-13-21.pdf
During the tenure of Director Calabria, the FHFA directed the Companies to hire investment bankers to prepare a new stock offering. Fannie Mae hired financial adviser Morgan Stanley. And Freddie Mac hired J.P. Morgan. What became of this? Were reports published from these two firms?
FHFA and Treasury ripped up the old agreement, and substituted in its place a new deal that created a “net worth sweep” whereby all of the funds received by the GSEs were paid over to Treasury as a dividend, even in amounts far in excess of the original 10 percent dividend. The consequences have been huge. Without the Third Amendment, all the senior-preferred stock would have been redeemed. With the Third Amendment, over $301 billion was sent to the Treasury.
Man With No Name said, Quote: “The "optional pay down" was only optional if certain conditions were met...and they never were.” Wrong
More than enough money was sent to the Treasury to pay down the LP and cancel the SPS. It is called Stealing! The FHFA is allowing the Treasury to steal the companies from the shareholders. I know it, you know it and everyone else that has studied the evidence knows it.
Quote: “Section 8(b)(iv) only applies if FnF had been able to pay down the seniors, which they never could.” End of Quote... Wrong!
Over $301 Billion has been sent to the Treasury. Over and above enough money to pay off the Treasury.
The money swept by the Treasury if it had been applied to LP and the 10% over payment returned to the companies the LP would be paid in full and the SPS would be redeemed and at that point in time SAME DAY IN TIME the companies could turn to the Market with a secondary IPO replacing the commitment.
NO MONEY LEFT TO PAYDOWN THE LP AND REDEEM THE SPS WHEN THE TREASURY SWEEPS THE ENTIRE NET WORTH. AND BY SWEEPING THE NET WORTH THE COMMITMENT CANNOT BE TERMINATED.
Again,
The Third Amendment cannot be used to wipe out the 10 and 12 percent dividend rates in the initial stock certificates. IT DOES NOT MATTER if the Third Amendment Net Worth Sweep is declared legal or illegal, THE DAMAGES ARE the extra payments to Treasury must be treated first as though they were a return of capital that calls for a dollar-for-dollar redemption of the senior preferred, thereby reducing the Treasury’s liquidation preference. Once all those shares are redeemed, the remainder of the money paid over to Treasury should be treated as excess payments that must be repaid in full to Fannie and Freddie with interest.
The Toxic Waste seems to have been funneled through Fannie to the Fed.
Quote: "It's a big event that the Federal Reserve is offering to buy up nearly 10% of the agency mortgage market," said Art Frank, a mortgage strategist with Deutsche Bank (DB:$31.8300,$1.1500,3.75%) .
Tuesday morning, the Federal Reserve announced that it would buy up to $500 billion of mortgage bonds guaranteed by Fannie, Freddie and Ginnie Mae, providing the ultimate support to prop up the $4.8 trillion market of these securities. The central bank also will buy $100 billion of the mortgage finance companies' debt securities, including that of the Federal Home Loan Bank, through reverse auctions starting next week.
So far, other initiatives to prop up the market including a plan to have both the government-sponsored enterprises buy nearly $200 billion of these bonds and the U.S. Treasury's unlimited purchase of these bonds have done little to stop the weakening of risk premiums on mortgage bonds. As a result, mortgage rates have remained at elevated levels with little relief to consumers." End of Quote
Link: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=33791597
Quote: “the largest U.S. home funding source, said it beefed up its mortgage investment portfolio in October, the first full month that the company was under government control.” End of Quote
Quote: “Commitments to purchase mortgages and securities in future months were $33.48 billion in October compared with $43.76 billion the prior month.” End of Quote
Quote: “the second largest U.S. home funding source, on Monday reported a 43.6 percent jump in its retained mortgage portfolio to $763.7 billion in October. The company, also taken under government control in early September, said its agreements to buy mortgages in coming months rose to $17.4 billion in October from $2.5 billion the prior month.” End of Quote
Quote: “Seriously delinquent rates on Fannie Mae conventional single-family mortgages jumped 15 basis points in September” End of Quote
Link: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=33801088
"they will very much be run with a public policy focus,"
Take over of Fannie and Freddie Nationalization. Regulator will push Fannie and Freddie to stabilize the ailing housing market.
RESULTS IN LOSSES ON DEFERRED TAX ASSET WRITE-DOWNS
11/06 03:12 PM
NEW YORK, Nov 6 (Reuters)
Quote: “Fannie Mae (FNM:$0.7449,$-0.1051,-12.36%) and Freddie Mac (FRE:$0.8699,$-0.0401,-4.41%) will file reports in coming days outlining third-quarter results, which analysts expect to show fifth consecutive quarterly losses on the back of deferred tax asset write-downs that could total a combined $39 billion.” End of Quote
Quote: “Philosophically, a bigger question for investors is how much the regulator will push Fannie Mae and Freddie Mac to stabilize the ailing housing market, regardless of the cost. The regulator can exercise more control than ever over the "missions" of the government-sponsored enterprises, raising doubts the companies could act in the name of shareholders.” End of Quote
Quote: “Expected write-downs of deferred tax assets -- or credits used to offset future income taxes -- at Fannie Mae and Freddie Mac will be big drag on third quarter results, and an admission of sorts that a weightier public policy role is trumping profitability under the conservator, Wagner said. It's likely "they will very much be run with a public policy focus,"
Quote: “Blows to stockholders' equity could trigger the U.S. Treasury's commitment to maintain positive net worths for the GSEs, and put capital injections in motion. Fees on the GSE's mortgage bond businesses are another clue on larger public policy roles. In normal times, the companies can protect profit by boosting fees on loans they guarantee. But with housing still reeling, government officials are pulling out the stops with emergency programs to encourage lending. Lower fees would make it easier for borrowers to refinance or get a new loan. The GSEs have already been shouldering more responsibility for housing over the last year as the credit crunch froze other lending programs, including Wall Street securitizations. Owning or guaranteeing nearly half of all U.S. residential mortgages, they have a unique view on the market that drives investment decisions elsewhere.” End of Quote
Link: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=33389575
SECTION 8. Liquidation Rights and Preference
YOU HAVE FAILED TO RECOGNIZE SECTION 8
In writing Section 3 as stated: "(as defined in the Preferred Stock Purchase Agreement referred to in Section 8 below),” This Section has to be included it is part of the CONTRACT.
Quote: “(iv) decreased each time the Company pays down the Liquidation Preference pursuant to Section 3 or Section 4 of this Certificate by an amount per share equal to the aggregate amount of the pay down divided by the number of shares of Senior Preferred Stock outstanding at the time of such pay down.” End of Quote NOTE: PAYS DOWN THE LIQUIDATION PREFERENCE
“Optional Pay Down of Liquidation Preference”
It cannot be argued, Fannie Mae and Freddie Mac were never provided with a mechanism to emerge from conservatorship. The SCOTUS ruled the Net Worth Sweep was legal. The SCOTUS did not rule the Optional Pay Down of Liquidation Preference as being void. No, it is not void, the court did not say it was void.
So why go through the charade of asking Fannie and Freddie raise additional capital to pay off the senior preferred in full when it has already been paid.
The mechanism is there as clear as day in the stock certificates and the repurchase option set out is fully consistent with the view that the government advances were, if possible, only a short-term backstop that Fannie and Freddie could refinance at any time with private capital.
NO MONEY LEFT TO PAYDOWN THE LP AND REDEEM THE SPS WHEN THE TREASURY SWEEPS THE ENTIRE NET WORTH. AND BY SWEEPING THE NET WORTH THE COMMITMENT CANNOT BE TERMINATED.
https://www.fhfa.gov/Conservatorship/Documents/Senior-Preferred-Stock-Agree/FNM/SPSPA-amends/FNM-Fourth-Amended-Restated-Certificate-04-13-21.pdf
Your fellow traveler said it’s illegal.
Quote “ I fully agree. I believe, as does basically everyone else here, that the NWS is illegal.” End of Quote
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=147582167
The money swept by the Treasury should be applied to LP and the 10% over payment returned to the companies and the LP would be paid in full and the SPS would be redeemed the companies could turn to the Market with a secondary IPO replacing the commitment.
NO MONEY LEFT TO PAYDOWN THE LP AND REDEEM THE SPS WHEN THE TREASURY SWEEPS THE ENTIRE NET WORTH. AND BY SWEEPING THE NET WORTH THE COMMITMENT CANNOT BE TERMINATED.
I do not understand how the Judge could not allow the Plaintiffs to read and explain the Contract to the Jury. Written in the Contract “Optional Pay Down of Liquidation Preference” was never changed in any of the amendments. And the Contract “Optional Pay Down of Liquidation Preference” exists in the same form as we speak today.
We all know this. We have known this for years. It’s stealing from the Shareholders and the Plaintiffs will have another opportunity to read and explain the CONTRACT to the Jury. The damages are the FHFA is allowing the Treasury to steal the companies from the Shareholders.
Robert you said, “The SCOTUS in Collins said that the NWS was STATUTORILY PERMISSIBLE under the Incidental Powers of HERA, right?”
Right, but how the money swept by the Treasury is applied is the difference. The Treasury cannot haphazardly just decide to keep it. The money doesn’t belong to the Treasury, the Shareholders are under CONTRACT.
Read the Contract to the Jury.
The Treasury sweeping the Net Worth by the Third Amendment and the SCOTUS allowing the Net Worth Sweep did not change the 10 and 12 percent dividend rates in the initial stock certificates. The Third Amendment cannot be used to wipe out the 10 and 12 percent dividend rates. IT DOES NOT MATTER if the Third Amendment Net Worth Sweep is declared legal or illegal, THE DAMAGES ARE the extra payments to Treasury must be treated first as though they were a return of capital that calls for a dollar-for-dollar redemption of the senior preferred, thereby reducing the Treasury’s liquidation preference. Once all those shares are redeemed, the remainder of the money paid over to Treasury should be treated as excess payments that must be repaid in full to Fannie and Freddie with interest.
The problem is not that the Treasury Swept the Net Worth of the companies. THE PROBLEM: The FHFA appointed CEOs failed by sending the NWS payments to the Treasury without the terms of the Pay Down of the Liquidation Preference applied.
Self-dealing FHFA appointed CEOs
WRITTEN AS CLEAR A DAY, Optional Pay Down of Liquidation Preference.
No one from the companies sent any letter to the Treasury stating the Liquidation Preference has been paid in full and the Senior Preferred Stock canceled. Instructions are written in the contract to do so. The FHFA appointed CEOs failed by sending the NWS payments to the Treasury without the Pay Down Option of the Liquidation Preference. The CEOs let the Treasury take it for free with no representation of the shareholders.
THE CONTRACT
https://www.fhfa.gov/Conservatorship/Documents/Senior-Preferred-Stock-Agree/FNM/SPSPA-amends/FNM-Fourth-Amended-Restated-Certificate-04-13-21.pdf
Mnuchin on Fannie And Freddie Funds Used to Pay for ObamaCare: It's True
Quote:”When Bartiromo asked about allegations that the Obama Administration took money from Fannie and Freddie to pay for the implementation of ObamaCare, Mnuchin responded, “It is true. They used the profits of Fannie and Freddie to pay for other parts of the government while they kept taxpayers at risk.”End of Quote
Link: https://www.foxbusiness.com/politics/mnuchin-on-fannie-and-freddie-funds-used-to-pay-for-obamacare-its-true
trunkmonk I’m thinking
JUSTICE BREYER: Quote: “Thank you. I think in reading this you could, with trying to simplify as much as possible, do you -- the shareholders' claim as saying we bought into this corporation, it was supposed to be private as well as having a public side, and then the government nationalized it. That's what they did. If you look at their giving the net worth to Treasury, it's nationalizing the company. Now, whatever conservators do and receivers do, they don't nationalize companies. And when they nationalized this company, naturally they paid us nothing and our shares became worthless. And so what do you say?” End of Quote, page 12
Link: https://www.supremecourt.gov/oral_arguments/argument_transcripts/2020/19-422_3e04.pdf
Someone said on this board that Breyer voted right along with the rest of the judges.
My answer to that…
“Optional Pay Down of Liquidation Preference”
It cannot be argued, Fannie Mae and Freddie Mac were never provided with a mechanism to emerge from conservatorship. The SCOTUS ruled the Net Worth Sweep was legal. The SCOTUS did not rule the Optional Pay Down of Liquidation Preference as being void. No, it is not void, the court did not say it was void.
Well said Robert, that’s worth repeating.
“ The federal agencies are Constitutionally not allowed to be used as a means to an end for the POTUS to spend money on his pet projects that he otherwise can't get through our elected representatives in Congress.”
Now to get a judge or jury to acknowledge the same.
You mentioned,
“as we go back to trial after a mistrial.”
Explain the contract to the jury. As, clear as day.
“Optional Pay Down of Liquidation Preference”
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=171244067
Actually an admission it’s illegal. I would have never guessed it.
Interesting going back. Several on this board have been in this a very long time.
Quote:”On the other hand FHFA is doing exactly opposite of this law. FHFA has totally ignored this law. Suspended capital requirements and then has gone on to rob the FnF of its capital and reduced it to almost zero.
I fully agree. I believe, as does basically everyone else here, that the NWS is illegal.” End of Quote
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=147582167
“but it’s mythical.”
Oh my goodness! Read the evidence Man!
As clear as day.
WASHINGTON (Dow Jones)--The regulator for Fannie Mae (FNM) and Freddie Mac (FRE)
directed the firms to begin immediately boosting their purchases of
mortgage-backed securities in support of a U.S. Treasury plan to shore up the
financial markets.
In a statement hours after the Treasury announced the plan Friday morning,
Federal Housing Finance Agency Director James B. Lockhart said he would ensure
that the mortgage giants increased their portfolios in "a safe and sound manner."
The program "should enhance consumers' access to mortgage financing and
ultimately result in reduced mortgage interest rates," Lockhart said.
The Treasury said Friday that it would increase its own program to purchase MBS
on the open market, announced earlier this month.
FHFA took control of the firms jointly with Treasury on Sept. 7, saying the move
was necessary to stabilize the mortgage market. -Jessica Holzer, Dow Jones
Newswires; 202-862-9228; jessica.holzer@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most
important business and market news, analysis and commentary:
http://www.djnewsplus.com/al?rnd=Tuf6jlTSR9asUD3iYofXbg%3D%3D. You can use this
link on the day this article is published and the following day.
(END) Dow Jones Newswires
September 19, 2008 14:14 ET (18:14 GMT)" End of Quote
Someone was saying the GSEs were never used as a toxic waste dump. Ha
Learn a lot going back into history on this board.
Quote: "~BC~
Friday, September 19, 2008 2:43:39 PM
Post#
3257
of 44078
GSE Regulator: Fannie, Freddie To Start Buying MBS Now
Last Update: 9/19/2008 2:14:49 PM
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=32295423
By Jessica Holzer
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--The regulator for Fannie Mae (FNM) and Freddie Mac (FRE)
directed the firms to begin immediately boosting their purchases of
mortgage-backed securities in support of a U.S. Treasury plan to shore up the
financial markets.
In a statement hours after the Treasury announced the plan Friday morning,
Federal Housing Finance Agency Director James B. Lockhart said he would ensure
that the mortgage giants increased their portfolios in "a safe and sound manner."
The program "should enhance consumers' access to mortgage financing and
ultimately result in reduced mortgage interest rates," Lockhart said.
The Treasury said Friday that it would increase its own program to purchase MBS
on the open market, announced earlier this month.
FHFA took control of the firms jointly with Treasury on Sept. 7, saying the move
was necessary to stabilize the mortgage market. -Jessica Holzer, Dow Jones
Newswires; 202-862-9228; jessica.holzer@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most
important business and market news, analysis and commentary:
http://www.djnewsplus.com/al?rnd=Tuf6jlTSR9asUD3iYofXbg%3D%3D. You can use this
link on the day this article is published and the following day.
(END) Dow Jones Newswires
September 19, 2008 14:14 ET (18:14 GMT)" End of Quote
You were right trunkmonk
Interesting stepping back in history of post written on this board as it was happening in real time.
Thursday, September 18, 2008
Quote: "I think you may have a shot at .45" End of Quote...
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=32272430
“What do YOU think?”
I think the FHFA is allowing the Treasury to steal the companies from the Shareholders.
“Did the US Congress give DeMarco the power to take all the future profits of their wards in conservatorship into perpetuity, thus Nationalizing the GSES, based on an Incidental Power in HERA?”
Absolutely not, this unelected bureaucratic has been allowed to steal the companies for the Treasury.
“Wouldn't the US Congress have given the FHFA more explicit instructions to do so than merely drafting in the HERA to do "whatever it feels is in its best interests"?”
Yes,
COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS UNITED STATES SENATE TUESDAY, JULY 15, 2008
STATEMENT OF HENRY M. PAULSON, JR., SECRETARY, DEPARTMENT OF THE TREASURY
Quote: “Fannie and Freddie play a central role in our housing finance system and must continue to do so in their current form as shareholder-owned companies.” End of Quote Page 6
Quote: “Our proposal was not prompted by any sudden deterioration in conditions at Fannie Mae or Freddie Mac. OFHEO has reaffirmed that both GSEs remain adequately capitalized.” End of Quote Page 6
Quote: “Let me stress that there are no immediate plans to access either the proposed liquidity or the proposed capital backstop. If either of these authorities is used, it would be done so only at Treasury's discretion, under terms and conditions that protect the U.S. taxpayer and are agreed to by both Treasury and the GSE.” End of Quote Page 6
Quote: “As I have said, we support the current shareholder-owned structure of these enterprises. Our plan addresses current market challenges by ensuring, on a temporary basis, access to both liquidity and capital, while also ensuring that the GSEs can fulfill their mission--a mission that remains critical to homeowners and homebuyers across the country, especially during this housing correction.” End of Quote Page 7
Link: https://ypfsresourcelibrary.blob.core.windows.net/fcic/YPFS/Senate-110-1008_2008.pdf
The above to THE UNITED STATES SENATE
” Yet he had a very different private message for Wall Street insiders."
EVIDENCE
Convincing evidence exists that the conservatorships of Fannie Mae and Freddie Mac were planned well in advance, and that they were intended to remove the companies permanently from private ownership.
Quote, “On July 11, the New York Times published a front-page article saying, “Senior Bush administration officials are considering a plan to have the government take over one or both of [Fannie Mae and Freddie Mac] and place them in a conservatorship if their problems worsen.”Shares of the companies plunged, and in response Paulson publicly pledged support for them on July 13, saying, “Fannie Mae and Freddie Mac play a central role in our housing finance system and must continue to do so in their current form as shareholder-owned companies.”Yet he had a very different private message for Wall Street insiders. As reported by Bloomberg in November of 2011, Paulson met with a select group of hedge fund managers at Eaton Park Capital Management on July 21, where he told them that Treasury was considering a plan to put Fannie Mae and Freddie Mac into conservatorship, which would effectively wipe out common and preferred shareholders.This, of course, is precisely what happened six weeks later. End of Quote, From “Treasury, the Conservatorships, and Mortgage Reform” January 11, 2015
Treasury, however, lacked authority to put the two companies into conservatorship; only the new regulator, FHFA, could do that. And Treasury had kept neither the old OFHEO nor the new FHFA apprised of its nationalization intentions. Paulson was unaware that the FHFA had sent both Fannie Mae and Freddie Mac letters saying the companies were safe and sound and exceeded their regulatory capital requirements. Paulson told Lockhart that he had to change his agency’s posture on the two companies, and FHFA did exactly that. FHFA sent each company an extremely harsh mid-year review letter, and two days later, Paulson, Lockhart and Fed chairman Bernanke met with the companies’ CEOs and directors to tell them they had no choice but to agree to conservatorship.
When Paulson met with the directors of Fannie Mae and Freddie Mac to inform them of his intent to take over their companies, neither entity met any of the twelve conditions for conservatorship spelled out in the newly passed HERA legislation. Paulson since has admitted he took the companies over by threat. This fact has been stated in the Washington Federal Lawsuit filed against the government.
Page 30-31 Twelve Conditions
Link: https://docs.google.com/file/d/0BxUYhg0cYUOTbkZYVVJkaGtoS1E/edit?resourcekey=0-gU6I5hW3ndG5E3uY2VEyGA
The Crime of the Wicked: Quote "The liquidation preference of the senior preferred stock increased to $107.9 billion on December 31, 2022 based on the increase in the Net Worth Amount during the third quarter of 2022, and will increase to $109.7 billion on March 31, 2023 based on the increase in the Net Worth Amount during the fourth quarter of 2022." End of Quote
Freddie Mac Fourth Quarter and Full-Year 2022 Financial Results
February 22, 2023
Page 8
https://www.freddiemac.com/investors/financials/pdf/2022er-4q22_release.pdf
Thou Shalt Not Steal
"The state of being wicked; a mental disregard for justice, righteousness, truth, honor, virtue; evil in thought and life; depravity; sinfulness; criminality."
Interesting stepping back in history of post written on this board as it was happening in real time. Confirms what we know…
Quote: “obiterdictum
Re: cabo_sailor post# 10321
Thursday, 10/16/2008 8:00:52 PM
You are welcome.
What do you think of the reported FRE short percent of float at 10.9% (70,555,700 short shares/647,300,000 shares float) and the short interest ratio at .4 (70,555,700 short shares/129,284,600 average trading volume) when the average trading volume is 15.80% of daily average over 30 days? “ End of Quote
Link: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=32919745
FOFreddie, stockprofitter
Kindly, forward it to Hamish Hume. I sent it by email didn’t get a reply. Hopefully, the Attorney received. Personally, if I was arguing the case to the jury I would read explaining the contract to them.
The below information I should have included.
FHFA APPOINTED CEOs
The problem is not that the Treasury Swept the Net Worth of the companies. THE PROBLEM: The FHFA appointed CEOs failed by sending the NWS payments to the Treasury without the terms of the Pay Down of the Liquidation Preference applied.
Self-dealing FHFA appointed CEOs
WRITTEN AS CLEAR A DAY, Optional Pay Down of Liquidation Preference.
No one from the companies sent any letter to the Treasury stating the Liquidation Preference has been paid in full and the Senior Preferred Stock canceled. Instructions are written in the contract to do so. The FHFA appointed CEOs failed by sending the NWS payments to the Treasury without the Pay Down Option of the Liquidation Preference. The CEOs let the Treasury take it for free with no representation of the shareholders.